FINTECH REPORT ROMANIA & BULGARIA

Abstract

This study provides a comprehensive analysis of the FinTech sectors in Romania and Bulgaria, exploring their current landscapes, growth trajectories, and identifying key trends, challenges, and opportunities. It synthesizes data from surveys, desk research, and interviews within ecosystem. The analysis reveals that the FinTech ecosystems in both Romania and Bulgaria, while not yet mature, have seen rapid growth since 2018. The total number of FinTech companies reached in 2023 was 240, with 84 in Romania and 156 in Bulgaria. Digital payments dominate the sector, accounting for 29% of the companies, followed by enterprise technology providers at 20%, and digital assets exchanges at 13%. The workforce in these sectors is also expanding, with the average number of employees per company growing significantly over the past few years. Economically, Romanian FinTech companies have experienced a notable increase in turnover, with an average annual growth of 20.44% from 2018 to 2022. Entrepreneurs in these regions value a qualified workforce and a familiar entrepreneurial environment highly when choosing to operate in Romania or Bulgaria. However, regulatory clarity and the availability of a sufficient customer base are also critical factors. This study highlights that overcoming these challenges through improved regulations, simplified procedures, and enhanced skilled workforce development could significantly bolster the sectors' growth. Moreover, fostering better cooperation with regulators that provide tax relief, and supporting the hiring of foreign workers are seen as crucial measures for future development. In summary, although the Romanian and Bulgarian FinTech sectors are on a growth trajectory, tackling specific systemic challenges could further unlock their potential, positioning them as central players in the FinTech landscape of South-East Europe.

Keywords: Fintech growth, Cross-border collaboration, Digital payments, Regulatory challenges, Skilled workforce, Entrepreneurial environment

JEL Classification: G23, L26, O31, O33, F65, K23, J24